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HDFC Bank likely to report nearly 22% jump in quarterly profit riding on robust loan growth
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HDFC Bank likely to report nearly 22% jump in quarterly profit riding on robust loan growth
Oct 13, 2022 9:33 PM

HDFC Bank is all set to report its financial results on Saturday, October 15. Analysts in a CNBC-TV18 poll expect HDFC Bank — India's largest lender by market value — to report a net profit of Rs 9,409 crore for the July-September period, a which translates to a jump of 21.7 percent compared with the corresponding period a year go.

The estimated jump in net profit is likely to be on the back of a 17.1 percent year-on-year increase in net interest income — or the difference between interest earned and interest paid — to Rs 20,712 crore.

The financial giant is scheduled to report its corporate earnings as the festive season gathers steam in the country, at a time when credit growth — a key measure of demand for lenders — has hit the highest levels in nine years and top bankers are optimistic of the trend to continue.

In a business update earlier this month, HDFC Bank said its advanced increased 23.5 percent on a year.on-year basis to Rs 14.8 lakh crore — which translates to the best growth in 14 quarters.

ALSO READ: Banks see loan growth picking up in July-Sept

Its deposits increased 19 percent to Rs 16.7 lakh crore, with the CASA ratio — or the proportion of current account and savings account deposits in total deposits — at 45.4 percent as against 46.8 percent in the year-ago period.

Analysts expect HDFC Bank's net interest margin — a key measure of profitability for financial institutions — to remain stable or improve sequentially.

The expect the lender's asset quality — measured as the proportion of bad loans in total loans — to remain stable or improve.

According to CLSA, its slippages — or new bad loans — are expected to come down to Rs 5500 crore in the July-September period from Rs 7,293 crore in the previous quarter.

For the April-June period, HDFC Bank reported a 19 percent jump in net profit to Rs 9,196 crore and 14.5 percent growth in net interest income, riding on the back of robust loan growth, best-in-class asset quality and a decline in the restructured book.

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